THE MORNING MOMENTUM Wednesday, July 22, 2026
🌅 PRE-MARKET SNAPSHOT (as of ~8:20am ET)
Yesterday's chip rally is pausing as oil surges ahead of tonight's Alphabet and Tesla earnings.
Index | Change |
|---|---|
SPY | −0.4% |
QQQ | −0.9% |
DIA | −0.2% |
IWM | −0.4% |
📰 WHAT YOU NEED TO KNOW
Oil is reviving inflation fears again. Brent crude climbed above $92 a barrel after the US carried out its 11th consecutive night of strikes on Iran. Secretary of State Marco Rubio said Washington remains committed to diplomacy but questioned Tehran's willingness to negotiate — a more skeptical tone than the "ceasefire hope" framing from earlier this week.
Yesterday's chip surge is cooling, confirmed by options flow. Micron is down ~4.5% (2.6x normal options volume), Intel down ~3.9% (2.2x volume), and Nebius down ~3.3% (2.3x volume) — all giving back ground after Tuesday's rally (Nebius alone was up 18.8% Tuesday). This looks like real profit-taking, not a reversal of the underlying AI-demand thesis.
Tonight is the big test. Alphabet and Tesla both report after today's close, with Intel following tomorrow. Investors want evidence that AI-infrastructure spending still justifies current valuations after Tuesday's sharp chip bounce. Tesla is down ~0.6% today on 2.5x normal options volume ahead of its report.
GE Vernova is down (~3.3%) ahead of its own earnings today — some analysts have flagged the stock (trading near 44x forward earnings, up 60% this year) as overvalued given grid-congestion and supply-chain headwinds that could delay revenue from its order backlog. The stock has recovered some ground from a sharper drop earlier this morning.
AT&T is up ~4.4% on 2.6x normal options volume, real conviction ahead of/around its earnings report today. Halliburton is up ~0.9% on 2.1x normal options volume, tracking the oil move.
🎯 MOMENTUM PLAYS TO WATCH — Confirmed by Options Flow
MU — Down ~4.5% on 2.6x normal options volume — today's clearest confirmed pullback in chips.
INTC & NBIS — Down 3.3-3.9%, both confirmed by 2.2-2.3x normal options volume, giving back Tuesday's gains.
T — Up ~4.4% on 2.6x normal options volume — the clearest confirmed bullish signal today.
TSLA — Down ~0.6% on 2.5x normal options volume, ahead of tonight's earnings.
🎲 GUESS THE CHART
This industrial/energy name is down ~3.3% ahead of earnings today — some analysts call it overvalued at ~44x forward earnings despite being up 60% this year, citing grid-congestion and supply-chain risk. Which ticker?
(Answer: Scroll back up if you want a hint.)
📅 TODAY'S CALENDAR
Earnings before/during the day from GE Vernova, Philip Morris, AT&T, CME Group, Texas Instruments, IBM, ServiceNow, and CSX. Alphabet and Tesla report after the close.
⚡ TRADER'S NOTE
Today is a genuine pause, not a reversal — chips are giving back real gains from Tuesday's rally, but that's normal digestion after an 18.8%+ single-day move in a name like Nebius. The actual test comes tonight: Alphabet and Tesla's numbers will say more about whether this month's AI-valuation whiplash settles down than anything happening in today's session.
⚠️ DISCLAIMER
This newsletter is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Always do your own research and consult a licensed financial advisor before making investment decisions.